South Korea: Hyundai Steel Raises Bid for Japanese Scrap by USD 9/MT

Following increased bids from Dongkuk Steel, Hyundai steel has raised bids for Japanese scrap recently by JPY 1000/MT.

South Korea’s leading electric arc furnace steelmaker – Hyundai Steel has raised its import prices for Japanese ferrous scrap by Japanese Yen 1000/MT (USD 9.47) w.e.f today (05 Mar’18). Its latest bid put for H2 grade scrap was at JPY 36,500/MT (USD 346), FoB Japan against its last bid reported on 23 Feb’18 at JPY 35,500/MT (USD 336), FoB Japan.

New prices for other grades of scrap are assessed at JPY 37,000/MT (USD 351) for H1/2 (50:50), at JPY 39,500/MT (USD 375) for both Shredded and HS scrap, While Shindachi scrap at JPY 41,500/MT (USD 394) and Shindachi Press scrap at JPY 42,500/MT (USD 403) on FOB Japan basis respectively.

Prior to this, the steelmaker increased bids for Japanese scrap sharply by JPY 1,500 (USD 14) on 23rd Feb’18. Thus prices have increased by JPY 2,500/MT (USD 24) in last two price hikes after hitting bottom at JPY 34,000/MT for Japanese H2 scrap in mid of Jan’18 on FoB basis.

Hyundai Steel is one of the largest buyers of Japanese scrap. According to market participants company imports yearly around 500,000-600,000 MT scrap from Japan.

South Korean another major EAF steel mill, Dongkuk steel, has already placed bids for Japanese H2 scrap at JPY 36,500/MT (USD 346) in its last price revision on 1st Mar’18. Dongkuk Steel increased scrap prices by JPY 1000/MT as against its last bid reported on at JPY 35,500/MT (USD 332), FoB.

Appreciating Yen against USD and high global scrap prices – Japanese Yen (JPY) has appreciated by almost 4% in a month’s time. Exchange rate (USD/JPY) is at 105.5 today as against 110.2 a month ago. While two months before JPY was trading at 113 against USD. Turkish imported scrap prices have strengthened further amid bullish rebar export prices. The price assessment of USA HMS 1&2 (80:20) ascended by around USD 4/MT in recent deals to USD 368/MT, CFR Turkey against the last report of USD 364/MT, CFR.

Market waits for Japanese monthly scrap export Tender – Japanese scrap exporters from Kanto region recently increased scrap export prices further by JPY 500/MT and market participants are expecting Japanese scrap price trend is likely to get more clear in monthly export tender Kanto Tetsugen. Currently, Tokyo steel fetches H2 scrap at JPY 37,500/MT (USD 356) at largest work in central Japan-Tahara.